PayPal acquires Hyperwallet in $400m cash deal

Digital payments giant PayPal has acquired Hyperwallet, a global payout solution, in a $400m cash deal.

This acquisition enhances PayPal’s payout capabilities, furthering its ability to offer an integrated payment solution for e-commerce and online marketplace companies around the world.

Following the close of the deal, Paypal and Braintree merchants will gain access to localised, multi-currency payment distribution channels across over 200 markets. This will support disbursement options such as prepaid card, bank account, debit card, cash pickup, check and PayPal.

Hyperwallet is a global payout solution that helps businesses to send funds to payees across the world. The solution offers a range of payment methods, financial management tools, integrated payment tracking, and compliance and identity verification.

PayPal COO Bill Ready said, “Ecommerce platforms and marketplaces are leveling the retail playing field by connecting buyers who have specific needs with groups of sellers that can meet them. Merchants and service providers who use these platforms want quick, efficient, flexible and secure access to their earnings, whenever and wherever they need them.

“By acquiring Hyperwallet, we will strengthen our ability to provide an integrated end-to-end solution to help ecommerce platforms and marketplaces — however large or small — leverage world-class payout capabilities in over 200 markets.”

The transaction is expected to close in the fourth quarter of 2018. Perella Weinberg Partners is acting as sole financial adviser to PayPal, while Raymond James & Associates serves as the advisor to Hyperwallet.

PayPal’s activity in the FinTech market has increased rapidly over the past few months. Most notably, the company recently completed the colossal $2.2bn acquisition of fellow payments company iZettle. The deal was completed to cultivate PayPal’s in-store presence and increase use within the omnichannel retail ecosystem.

Following the deal closure, PayPal extended its reach to Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden.

PayPal has also taken part in a number of funding rounds this year, with the company investing alongside Temasek to deploy $125m into digital payments company Pine Labs.

Other contributions to funding rounds this year include, cashback payments app Dosh, financial savings marketplace Raisin, and cybersecurity platform SafeBreach.

Copyright © 2018 FinTech Global

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